Author: Andrew Seow, Rimini Street, Regional General Manager for Southeast Asia and Greater China
CIOs and other information technology leaders are feeling the pressure from vendors, as well as from the C-suite and the board, to move systems to the cloud. The cloud is capturing the imagination, and increasingly the budget, of all organisations that believe in the potential of cost effective and agile IT.
As cloud provides benefits such as flexibility, agility, reach and scalability, cloud-centric operating models continue to become an integral component to modernising the IT environment. IDC's Worldwide Cloud 2020 Predictions predicted that by the end of 2021, over 90 per cent of enterprises in APEJ (Asia Pacific excluding Japan) will rely on a mix of on-premises/dedicated private cloud, several public cloud, and legacy platforms to meet their infrastructure needs. As enterprises increase investments in mobility, collaboration and other remote working infrastructure, the proportion allocated towards IT spending that is shifting to cloud will continue to accelerate with at least 91 per cent of enterprises’ budget.
According to Statista, Malaysia scored 8.3 on the Cloud Readiness Index (CRI) and ranked 8th in the Asia Pacific Region in 2020, a position held since 2018. Although it is an encouraging sign on the country's cloud readiness, progress is slow and there may be a fast-growing realisation among company leaders that the transition to using cloud services has to be accelerated or they risk being left behind.
These are proof points supporting how the world of enterprise IT is dramatically changing as the need to rapidly accelerate the digital transformation journey continues. Organisations are forced to re-evaluate their business priorities and reinforce cloud adoption for cost efficiency and business continuity. However, the cloud is not the only big disruptor. CIOs are also paying attention to these other cloud-dependent disrupters.
The machine learning insights that the ride-sharing companies get so much mileage out of are realised partly because they pool data across all their operations, with smartphone apps and dispatch servers in the same cloud. IoT and blockchain are likewise part of the cloud era, and we can expect to see many machine learning applications that are tied to IoT and blockchain networks.
Adopting these new technologies depends on increasingly pervasive and reliable cloud technologies. As organisations learn to trust more data and applications to the cloud, the benefits of more interconnected systems and aggregated data will become apparent. The challenge for IT leaders is to understand the broad trends without being pressured into enterprise application decisions that go against the best interests of their organisations.